On April 28, 2003, Veeco Instruments Inc. issued a press release, the
text of which is attached hereto as Exhibit 99.1.

The
information in this Current Report on Form 8-K, including the exhibit, is
furnished pursuant to Item 9 and shall not be deemed filed for the purposes
of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange
Act), or otherwise subject to the liabilities under that Section. Furthermore, the information in this Current
Report on Form 8-K, including the exhibit, shall not be deemed to be
incorporated by reference into any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by
specific reference in such a filing.

SIGNATURES

Pursuant to the
requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.

FOR IMMEDIATE RELEASE

VEECO REPORTS
FIRST QUARTER 2003 RESULTS

Woodbury, NY, April 28, 2003
Veeco Instruments Inc. (Nasdaq: VECO) today announced its financial results
for the first quarter ended March 31, 2003. Results were above quarterly
guidance provided by Veeco on February 11, 2003. Veeco reports its results on a GAAP basis, and also provides
results excluding certain charges. Investors should refer to the attached table
for further details of the reconciliation of GAAP (loss) earnings to earnings
excluding certain charges.

First Quarter 2003 Results

Veecos sales
for the first quarter of 2003 were $65.8 million, an 18% decrease from the
$80.1 million reported for the first quarter of 2002 and a 4% sequential
decline from the fourth quarter of 2002.
Metrology sales were $36.2 million in the first quarter of 2003 compared
to $35.3 million in the first quarter of 2002.
Veecos Process Equipment sales were $29.6 million in the first quarter
of 2003 compared with $44.8 million in the first quarter of 2002. Veecos sales by market in the first quarter
of 2003 were 29% data storage, 17% semiconductor, 10%
telecommunications/wireless and 44% scientific research.

Veecos
bookings for the first quarter of 2003 were $72.7 million, up 4% from the $70.2
million reported in the first quarter of 2002, and a 2% sequential increase
from the fourth quarter of 2002. First
quarter 2003 Metrology bookings were $34.4 million, an 8% increase from the
$31.8 million reported in the first quarter of 2002. First quarter 2003 Process Equipment bookings were $38.3 million,
flat compared to the $38.4 million reported in the first quarter of 2002. Veecos bookings by market in the first
quarter were 41% data storage, 16% semiconductor, 14% telecommunications/wireless
and 29% scientific research. The Companys first quarter book-to-bill ratio was
1.11.

-more-

Veeco incurred an operating loss of $0.8 million in
the first quarter of 2003, compared to an operating loss of $3.3 million in the
first quarter of 2002. Excluding $0.7
million in first-quarter restructuring charges, primarily severance, Veecos
first quarter 2003 earnings before interest, taxes and amortization (EBITA) was
$3.0 million compared to EBITA of $1.3 million for the first quarter of 2002,
which also excludes restructuring charges.

Veecos first quarter 2003 net loss was $1.7 million
(($0.06) per share) compared to a net loss of $3.5 million (($0.12) per share)
in the first quarter of 2002. Excluding
certain charges, first quarter 2003 earnings per diluted share was $0.03
compared to $0.00 per diluted share in the first quarter of 2002. Veecos guidance was for first quarter 2003
net income excluding certain charges to be between $0.00-0.02 per diluted
share.

Management
Review of Results

Edward H. Braun, Veecos Chairman and Chief Executive Officer
commented, Despite continued worldwide economic uncertainty, Veecos order
trend (+2% quarter over quarter; +4% year over year) indicates both improved
stability in our served markets and a continued demand for our enabling
technology products. We are pleased to
report that Veecos bookings, revenues and earnings were above our guidance. We
have met our plan to be profitable in both Process Equipment and Metrology on
an EBITA basis in the first quarter of 2003 as a result of our cost-reduction
actions. We currently expect to achieve
GAAP profitability by year-end.

Mr. Braun
commented, Despite the continued worldwide uncertainty and weak capex
environment, Veeco remains focused on delivering improved earnings in 2003. Our
diversification of markets and new product strategy should continue to help
Veeco in these challenging times. Our positive book-to-bill ratio for the last
two quarters should translate into increased revenues as we go forward in 2003.
We will continue to implement our cost reduction program while investing in
Veecos core leadership products to meet our customers next-generation product
roadmaps.

Veeco currently forecasts
that second quarter 2003 bookings will be in the range of $68-$73 million. Veeco currently estimates that second
quarter 2003 sales will be in the range of $64 - $67 million, and that it will
lose between ($0.07 and $0.04) per share on a GAAP basis. Veeco currently estimates that it will earn
between $0.01 and $0.04 per share excluding amortization of $3.1 million and
charges of approximately $700,000 (principally severance related to the
Companys fourth quarter 2002 restructuring initiatives), using a 35% tax rate.

Investor Conference
Call/ Webcast

Veeco will host an investor conference call this
morning, April 28, at 10 am ET to review these first quarter results. You may listen to the call live at
1-800-289-0518 or through an audio

3

webcast at http://www.veeco.com (Investor
Information). This call will be
archived for future reference. A
telephonic playback of the conference call will also be available starting this
afternoon at 888-203-1112 or 719-457-0820 code 524029 or on the Veeco website.

About Veeco

Veeco Instruments Inc. provides solutions for nanoscale applications in
the worldwide semiconductor, data storage, telecommunications/wireless and
scientific research markets. Our Metrology products are used to measure at the
nanoscale and our Process Equipment tools help create nanoscale devices.
Veecos manufacturing and engineering facilities are located in New York,
California, Colorado, Arizona and Minnesota. Global sales and service offices
are located throughout the United States, Europe, Japan and Asia Pacific.
Additional information on Veeco can be found at http://www.veeco.com/.

To the
extent that this news release discusses expectations about market conditions or
about market acceptance and future sales of Veecos products, or otherwise
makes statements about the future, such statements are forward-looking and are
subject to a number of risks and uncertainties that could cause actual results
to differ materially from the statements made.
These factors include the challenges of continuing weakness in end
market conditions and the cyclical nature of the telecommunications/wireless,
data storage, semiconductor and research markets, risks associated with the
acceptance of new products by individual customers and by the marketplace and other
factors discussed in the Business Description and Managements Discussion and
Analysis sections of Veecos Annual Report on Form 10-K, subsequent Quarterly
Reports on Form 10-Q and current reports on Form 8-K.

Earnings excluding
certain charges before interest and income taxes (EBITA)

3,006

1,320

Interest expense, net

1,767

1,486

Earnings (loss)
excluding certain charges before income taxes

1,239

(166

)

Income tax provision
(benefit) at 35%

434

(58

)

Earnings (loss)
excluding certain charges

$

805

$

(108

)

Earnings (loss) excluding
certain charges per diluted share

$

0.03

$

(0.00

)

Diluted weighted
average shares outstanding

29,384

29,021

NOTE - The above reconciliation is intended to
present Veecos operating results, excluding certain charges and related
provision (benefit) for income taxes. This reconciliation is not in accordance
with, or an alternative method for, generally accepted accounting principles,
and may be different from similar measures presented by other companies. Management of the Company evaluates
performance of its business units based on EBITA and thus believes that the
presentation of this financial measure provides useful information.